The bigger your farm business, the more of a headache your books can be—which is why farm management accounting software education and training is such a lifesaver. Sure, you can hack your way through accounting software for farmers, but you may never use the program to its fullest potential, and you may end up wasting a great deal of time. Instead, it's a smart idea to take a little time up front to truly learn your farm accounting software.
There are a number of ways to become competent—even an expert—in farm management accounting software. Just one of these options should provide all the information you need to help your business run smoothly. The options include:
1. Learning the ropes from farm accounting programs' manufacturers,
2. Taking college classes on farm management accounting systems,
3. And attending private seminars on farmer accounting software.

Action Steps
The best contacts and resources to help you get it done

Let the pros from your farm accounting software manufacturer teach you

If anyone knows a piece of software intimately, it's the manufacturer of the program. Many of the top agricultural accounting software program creators offer consulting, one-on-one aid and training in their product.

I recommend: Red Wing Software offers complete seminar training for all their farm accounting and management products. Martens Farms also provides one-on-one training or consultations for training in the use of their farm accounting software.

Go back to school to learn farm office accounting software

Many schools with good agricultural programs offer courses in farm agriculture accounting software. Check your local universities and colleges for affordable learning opportunities.

I recommend: South Central College of New Mexico provides classes in farm business and accounting software, as does Oklahoma State University.

Learn farming accounting systems from other sources

A number of businesses provide a variety of financial services to farmers, including training and consulting in accounting software for agriculture. Look for a business that's been around for a while and offers seminars or workshops in your state.

I recommend: The Ferguson Group offers accounting software specialists to train those in agriculturally oriented businesses. AgriSolutions offers web-based seminars on a wide variety of agricultural topics, including using accounting software.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Before you get training in farming accounting software, make sure you've carefully compared the top programs suitable to your business. Farm trade shows are good places to begin this search, but many farmer groups offer side-by-side comparisons of the many agriculture farming programs available.

You'll find that accounting software for farmers comes in versions for producers, accounting professionals and lenders. Depending on your technological proficiency and the size and scope of your farm, you could get away with simple, non-agricultural accounting software to track expenditures and income, or you may need to invest in one of the "luxury" versions of farmer accounting software that encompasses management, equipment depreciation, financial planning and accounting functions.

Buying integrated farm management accounting software isn't for everyone, and it's not for the faint-of-heart (or wallet). Try before you buy whenever possible, and keep in mind:

1. The tenets of your business plan and your ultimate farming goals

2. How you (or your accountant) will use ag accounting software

3. Your level of computer expertise and training needs

Action Steps
The best contacts and resources to help you get it done

Audition small business farm accounting software at no cost

Before you buy, find out how easy farm accounting programs are to use, and how well they would work for your specific agricultural application, by downloading and using free trials or touring demos.

I recommend: Download a free version of Farm Biz Agricultural Software for Farm and Ranch, and get started entering your information and generating reports today -- you just won't be able to enter July-December information until you buy the full version. Visit 123farmworks.com to download a demo of Farm Funds by Farm Works Software, part of the Farm Trac integrated farm management software package.

Find farm agriculture accounting software for use with popular analysis tools

Farm managerial accounting software was developed by agricultural pros and scholars for total farm management and financial integration. The University of Minnesota's Center for Farm Financial Management developed FINPACK. It is a professional-grade, whole-farm planning and financial analysis program used by industry leaders and credit analysts when making agricultural lending decisions.

I recommend: Visit Vertical Solutions, Inc., for a virtual demo of Easy-Farm, farm office accounting software that offers complete integration into FINPACK.

Manage your business with farm office accounting software made for farmers

Many producers may already have information in QuickBooks, but some farm accounting software makers have made switching a little easier. Ask about QuickBooks data integration before you purchase accounting software for agriculture. Transfer QuickBooks data in Excel format into the farming accounting software you choose for a complete transition.

I recommend: Download a free evaluation trial of DataTech Ag Software or Blue Skies Accounting by AgData, agricultural accounting software programs built with the producer in mind.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Consider farming accounting systems that will communicate with your farm management software. Oftentimes, you can generate reports from one program or another in an Excel format, then import the tables into the other program. If compatibility is a major concern for you, purchase totally integrated farm management accounting software that can handle it all.

Farm managers looking for an accounting software program to help manage expenses have several from which to choose. Before choosing a software program, farm managers need to make a list of the things that they require in a software program and then make sure that the software has those capabilities. If they want to make the best decision, managers should know certain terms to better understand the software features.

Action Steps
The best contacts and resources to help you get it done

Equipment depreciation

Equipment depreciation occurs as farmers use their equipment. Over time, the value and usefulness of machinery depreciates due to use, rust and general wear and tear. It's important for farmers to track equipment depreciation because they may be able to use it as a tax deduction.

I recommend: The University of North Carolina offers an extensive article on farm equipment depreciation.

Cash flow statement

A cash flow statement, or cash flow plan, allows you to see where your money comes from and goes to over a period of time. This helps you to plan for large purchases or to better manage your money. Farm accounting programs should be able to create this automatically from data you enter.

I recommend: For a lengthier description of a cash flow statement, check out the Business Owners Toolkit.

Accrual and cash methods

The accrual and cash methods are two different ways that you can handle your accounting. In the more popular accrual method, business owners count their income at the time that the transaction occurs. In the cash method, they do not count the income until the customer pays the cash.

I recommend: Look to Nolo for descriptions and examples of the cash and accrual methods.

P&L statement

A profit and loss statement, also known as a P&L statement, is essential for any business. It shows the business owner where he or she made profits and where there were losses.

I recommend: eSmallOffice gives business owners step-by-step instructions on how to create a P&L statement, including an example.

Inventory management

Any good farm management accounting software should provide inventory management capabilities. Inventory management is keeping track of a company's inventory, including when new stock comes in or goes out.

I recommend: Look to InventoryManagement.com for a more detailed description of inventory management and a discussion about what inventory management software should do.

Schedule F

The schedule F is a profit-and-loss statement for farms that must be submitted along with taxes. Many farm management accounting software programs allow farmers to easily print out this information.

I recommend: Download a PDF file from FedForms.gov (the official site for federal government forms), which offers the instructions for filling out the schedule F.

Farmers need a reliable and current way to keep track of their finances and also their inventory, and getting information on accounting software for farmers is the first step. While old fashioned paper accounting might have worked years ago, modern technology can help farmers handle the books more quickly and give them the tools to be more productive.

When looking for farm management software advice and ratings, it is important to find the best industry-specific information. Keep the following in mind when doing your research:

1. Listen to reviews by other farmers on different farmer accounting software packages.

2. Gather information about farming accounting software so you can compare functionality and decide which programs will work for you.

3. Subscribe to agricultural or farming magazines to keep up-to-date on farming techniques and technological advances, including farming accounting software.

Action Steps
The best contacts and resources to help you get it done

Review peer feedback on farm management accounting software

Information on a manufacturer's website can be very informative, but it will only give you the pros and not the cons. A good way to get advice and ratings on farm accounting software is to read reviews from people like you who have already used the software.

I recommend: Read about customer responses to FarmLogic software at tradeshows on TapLogic's website. You can review different agricultural accounting software and read customer reviews at eiNET.net.

Get information about different farm accounting software packages

One of the best ways to determine what farming accounting systems are right for you is to compare the different software programs available. Once you know what you need from ag accounting software, you can easily discern what programs will and will not work for your farm.

I recommend: Capterra allows individuals and companies to request and receive free information about farm office accounting software from many different companies. This allows you to compare software packages to see which is the best fit for your business. Michigan State University offers a comparison sheet on different accounting software for farmers.

Find farm accounting programs information in agricultural magazines

Subscribing to farming magazines is a good way to keep up with current agricultural news and trends, and to stay abreast of new accounting technology. Magazines dedicated to this industry will likely report on software that works best for the farming industry.

I recommend: Subscribe to The Agricultural Education Magazine is a good resource for current agricultural news, techniques and agriculture accounting software technology. The Farm Journal is another great resource for farmers.